Details of the Senate Committee-Amended CPSC Bill on Product Safety (Part VI - CPSC Bonds, Action Plans, Etc.)
On December 5, 2007, the Senate Committee on Commerce, Science, and Transportation reported with an amendment in the nature of a substitute, S. 2045, the CPSC Reform Act of 2007, to reform the Consumer Product Safety Commission to provide greater protection to children's products, and for other purposes.
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This is Part VI of a multi-part series of summaries of the version of S. 2045 ordered to be favorably reported by the Senate Commerce, Science, and Transportation Committee. Part VI highlights provisions of S. 2045 that would provide CPSC with expanded authority to require the posting of bonds, company action plan amendments, etc. (See future issue of ITT for the final summary.)
CPSC Could Require Bonds to Cover Cost of Recall, Holding Product at Port, Etc.
S. 2045 would amend the Consumer Product Safety Act (15 USC 2051 et seq., CPSA) by adding a provision at the end providing the CPSC with bonding authority which, in a rulemaking proceeding, would allow the CPSC to require the posting of a bond (or other security acceptable to the CPSC) in an amount sufficient to cover the costs of:
(1) an effective recall of the product or substance; or
(2) in the case of an imported product or substance, to cover the costs of holding the product or substance at the port and the destruction of the product should such action be required by the CPSC under the CPSA or any other Act enforced by the CPSC.
Significant Violators/Manufacturers/Distributors Would be Subject to Bonds
The CPSC would be able to require the posting of such bonds by a person who has committed multiple significant violations of the CPSA or any rule or act enforced by the CPSC; by the manufacturer or distributor of a category or class of consumer products; or by the manufacturer or distributor of any consumer product or any product or substance regulated under any other act enforced by the CPSC.
CPSC Could Order Amendment to Company Action Plans, Revoke Approval, Etc.
S. 2045 would amend 15 USC 2064 (d) to, among other things, allow the CPSC to amend by order, or require the amendment of, an already approved action plan submitted by a manufacturer, distributor or retailer (company) to bring a product into conformity with the applicable consumer product safety rule, replace it with a like or equivalent complying product, refund the purchase price, etc. if the CPSC finds that an approved action plan is not effective or being executed effectively.
The CPSC may also determine after notice and opportunity for comment that a company has failed to substantially comply with its obligations under its action plan, and may revoke its approval of the action plan.
After receipt of such a notice of revocation of the action plan, the company may not distribute into commerce the product to which the action plan relates.
CPSC Could Request That Importers Identify the Manufacturer, Etc.
S. 2045 would amend 15 USC 2065 by adding a new paragraph (c) which would require every importer, retailer, or distributor of a consumer product (or other product or substance over which the CPSC has jurisdiction under the CPSA or any other act) to provide upon CPSC's request, identifying information on the manufacturer.
If requested by the CPSC, manufacturers would also have to provide identifying information on each retailer or distributor to which it supplied a given consumer product (or other product or substance over which the CPSC has jurisdiction under the CPSA or any other act); each subcontractor involved in the production or fabrication of such product or substance; and each subcontractor from which it obtained a component thereof.
Substantial Product Hazard Reporting Requirement Would be Expanded
S. 2045 would amend 15 USC 2064(b) by expanding the substantial hazard reporting requirement for companies who must inform the CPSC of products that fail to comply with an applicable consumer product safety rule, contain a defect, etc. to include consumer products (or other products or substances over which CPSC has jurisdiction under the CPSA or any other act) distributed in commerce that fail to comply with any rule or standard promulgated by the CPSC under the CPSA or any other act.
(See ITT's Online Archives or 11/06/07, 11/07/07, 11/08/07, 11/20/07, and 12/10/07 news, 07110600, 07110710, 07110810, 07112010, and 07121010, for Parts I-V.
See ITT's Online Archives or 10/22/07 news, 07102205, for BP summary of earlier version of S. 2045.
See ITT's Online Archives or 10/18/07 news, 07101815, for BP summary of H.R. 2474, a House-passed bill to increase maximum civil penalties that can be imposed by the CPSC.)
Committee reported version of S. 2045 available at http://thomas.loc.gov/cgi-bin/query/C?c110:./temp/c110s7oxzN
Consumer Product Safety Act (Public Law 92-573, dated 10/27/72) available at http://www.cpsc.gov/BUSINFO/Cpsa.pdf